Heliostar Commences 5,000 Metre Resource Expansion Drill Program at Ana Paula High Grade Gold Project, Mexico and Issues Incentive Grant
Heliostar Commences 5,000 Metre Resource Expansion Drill
Program at Ana Paula High Grade Gold Project, Mexico and
Issues Incentive Grant
Vancouver, Canada, September 17 th, 2024 – Heliostar Metals L td. (TSX.V: HSTR, OTCQX: HSTXF, FRA:
RGG1) (“Heliostar” or the “Company”) is pleased to announce that it commenced a 5,000 metre diamond
drill program at its Ana Paula Project in Mexico (“ Ana Paula”). The two stage drill program will test the
east, west and down dip extensions of the High Grade Panel and the Parallel Panel targets. Phase one will
consist of seven drill holes totalling 2,600 metres and phase two consists of eight drill holes totalling 2,400
metres.
Heliostar CEO, Charles Funk, commented, “We are confident that Ana Paula can continue to grow beyond
our 2023 resource update. The Company aims to expand the resource this year and next, ahead of a
Feasibility Study that the Company is planning to complete in late 2025. Drilling will include some large
step outs . They follow a newly identified geochemical corridor that may point to the source of gold
mineralization at the deposit. Heliostar has entered a period of significant catalysts including closing the
Argonaut acquisition, reporting gold production , laying out production guidance, publishing a PFS for La
Colorada, and reporting drill results from multiple properties.”
Figure 1: A cross section with the resource model from 2023 Mineral Resource Estimate highlighting the High Grade Panel
(clipped to greater than 2g/t resource blocks). Planned holes from current program shown in black where they cut the section.
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Figure 2: A cross section highlighting the Parallel Panel Target (clipped to greater than 2g/t resource blocks). Planned holes
from current program shown in black where they cut the section.
Drill Program
The Phase 1 drill program, currently underway, will focus on extending the High Grade Panel and Parallel
Panel to the west. It will also test the downdip extension of the High Grade Panel while infilling the Parallel
Panel target. The program will consist of seven drill holes totaling 2,600 metres . Two drill holes will step
out approximately 70 metres to the west along a corridor of elevated potassium:calcium (K:Ca)
geochemistry that extends west and down-plunge from the High Grade Panel.
These two holes have the potential to significantly add high-grade ounces to the resource. The remaining
five drill holes will test the down -dip extension of the High Grade Panel while also defining the Parallel
Panel target. These holes will also convert inferred ounces to indicated and increase the measured ounces
in the High Grade Panel.
Phase 2 drilling consists of eight drill holes totaling 2,400 metres . This program targets the eastern and
western extents of the High Grade Panel, the Parallel Panel target and the downdip extension of the High
Grade Panel. Three holes along the edges of the High Grade Panel have the potential to add high -grade
ounces to the panel by extending to the east and west. The five holes targeting the Parallel Panel, High
Grade Panel and the down dip extension will better define the resources. The data will assist in converting
inferred ounces to indicated and indicated to measured . The program also has a strong potential to add
new gold ounces to both panels.
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The Company completed two drill holes of the program to date and expects to report results from October
2024.
Incentive Plan Rewards
The Company announces that, pursuant to the Company's Omnibus Equity Incentive Compensation Plan,
it has granted 4,675,000 stock options ("Options") at an exercise price of $0.42 and 1,180,000 restricted
share units (each, an "RSU") to directors, officers, employees and consultants of the Company. The
Options are exercisable for a period of five years and will vest over the next two years. The RSUs will vest
in three equal annual instalments commencing on the first anniversary of the grant date.
Advisory Agreements
The Company also announces that it has entered into an advisory agreement with TSCG Capital Group
(“TSCG”), pursuant to which the Company engaged TSCG to provide financial advisory services to the
Company. On completion of the Offering, and upon receipt of approval of the TSX -V, the Company will
issue to TSCG warrants to acquire 696,000 Shares at a price of $0.42 per share for a period of 24 months
from the date of issuance.
The Company announces that it has entered into an advisory agreement with 3L Capital Inc. (“3L”),
pursuant to which the Company engaged 3L to provide financial advisory services to the Company. Upon
receipt of approval of the TSX -V, the Company will issue to 3L warrants to acquire 113,000 shares at a
price of $0.42 per Share for a period of 24 months from the date of issuance.
Statement of Qualified Person
Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects , has reviewed the scientific and technical information that
forms the basis for this news release and has approved the disclosure herein.
About Heliostar Metals Ltd.
Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on developing the
100% owned Ana Paula Project in Guerrero, Mexico and has recently entered into an agreement to
acquire a portfolio of production and development assets in Mexico.
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
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This news release includes certain "Forward–Looking Statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and "forward –looking information" under applicable
Canadian securities laws. When used in this news rel ease, the words "anticipate", "believe", "estimate",
"expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or
expressions, identify forward –looking statements or information. These forward –looking statements or
information relate to, among other things, the intended use of proceeds of the Working Capital Facility
and the Transaction Closing Facility, closing of the Acquisition, exploration and development of the
Company’s projects and potential cash flow and production from the Company’s projects.
Forward–looking statements and forward–looking information relating to the terms and completion of the
Facility, any future mineral production, liquidity, and future exploration plans are based on management's
reasonable assumptions, estimates, expectation s, analyses and opinions, which are based on
management's experience and perception of trends, current conditions and expected developments, and
other factors that management believes are relevant and reasonable in the circumstances, but which may
prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of
necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military
conflicts; costs of exploration and development; the est imated costs of development of exploration
projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain
financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are
necessarily based upon a number of other assumptions and estimates that, while considered reasonable
by management, are inherently subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and unknown, could cause actual results,
performance, or achievements to be materially different from the results, performance or achievements
that are or may be expressed or implied by such forward –looking statements or forward -looking
information and the Company has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: precious metals price volatility; risks associated with the
conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting
delays; risks relating to reliance on the Company's management team and outside contractors; risks
regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks,
on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and
unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical
recoveries and capital and operating costs of such projects; contests over title to pr operties, particularly
title to undeveloped properties; laws and regulations governing the environment, health and safety; the
ability of the communities in which the Company operates to manage and cope with the implications of
public health crises; the ec onomic and financial implications of public health crises, ongoing military
conflicts and general economic factors to the Company; operating or technical difficulties in connection
with mining or development activities; employee relations, labour unrest or unavailability; the Company's
interactions with surrounding communities; the Company's ability to successfully integrate acquired
assets; the speculative nature of exploration and development, including the risks of diminishing quantities
or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack
of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption
“Risk Factors” in the Company’s public disclosure d ocuments. Readers are cautioned against attributing
undue certainty to forward –looking statements or forward -looking information. Although the Company
has attempted to identify important factors that could cause actual results to differ materially, there may
be other factors that cause results not to be anticipated, estimated or intended. The Company does not
intend, and does not assume any obligation, to update these forward –looking statements or forward -
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looking information to reflect changes in assumptions or changes in circumstances or any other events
affecting such statements or information, other than as required by applicable law.